Can Dogecoin price realistically reach $4.20?

Cryptocurrencies stabilized somewhat on Wednesday after sliding over the past two consecutive days. Dogecoin price rose slightly as traders anticipated Elon Musk’s DOGE success. An analyst predicted that the dog-themed coin would rise to $4.20 in the ongoing crypto bull market.

Analysts predict that Dogecoin price could reach $4.20

Dogecoin price has been in a strong uptrend in recent weeks, rising nearly 500% between August 5th and November 23rd. This rally coincided with the broader bullish trend in the crypto industry after Donald Trump won the election and was appointed Elon Musk takes over as head of the Ministry of Government Efficiency (DOGE).

In an X post, CEOa popular crypto investor with over 511,000 followers, predicted that DOGE price would rise to $4.20 in the current cycle. If this were to happen, it would mean the coin would rise 976% from current levels. Such a move is possible in the crypto industry as DOGE has already risen by 160% in the last few days. In this case, DOGE’s market capitalization would increase from the current $57 billion to over $613 billion.

For this to happen, cryptocurrencies must be in a strong uptrend, which would create a feeling of greed in the market. Bitcoin, the largest cryptocurrency on the market, would also have to continue its upward trend. In most time frames, altcoins like Dogecoin thrive when Bitcoin is in a strong rally.

Other cryptocurrencies are extremely bullish on the Dogecoin price. In a post, The Cryptomist noted that the coin formed a falling wedge pattern. This pattern occurs when an asset forms two descending and converging trend lines. Typically, a strong breakout occurs when the wedge is about to converge.

The DOGE price chart hints at a possible breakout

While talk of DOGE price rising to $4.2 is good, the most realistic situation is to first target the psychological point at $1.

The weekly chart shows that the Value of DOGE has been in a long uptrend for six consecutive weeks. In most cases, assets take a breather after such a long uptrend.

It remains above the key resistance level at $0.2278, the highest level in March this year. Crossing this point invalidated a double top pattern with the neck line at $0.0836. The coin remains well above the 50-week and 200-week moving averages.

A further increase in Dogecoin price will be confirmed if it rises above the monthly high of $0.4790. Such a move increases the chances of the price rising to its all-time high of $0.7393, which is about 87% above current levels.

The Dogecoon price prediction will be invalidated if it falls below key support at $0.2833, the 61.8% Fibonacci retracement point. Such a move increases the probability of the price falling to $0.20.

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Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.